[alexson94]

Hi Sirs,

I am wondering that:
– Under the guidance of IAS 02, the cash discount (settlement discount) shall be deducted from the cost of inventory when purchased.
Link for reference: https://www.iasplus.com/en/meeting-notes/ifrs-ic/not-added/2002/cash-discounts
– However, under the guidance of IAS 16, the specific guidance is refer to trade discounts that shall be deducted.

So why the accounting treatment should be distinguished between the Inventory and PPE in the context that they are both refer to initial recognition on purchases of assets.

Thank you very much!

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